The number one platform in retail foreign exchange is none other than MetaTrader 4.
MetaTrader Trading Platform
MetaTrader is an excellent trading platform offered by the most serious of brokers. Designed and developed by Metaquotes Software Corp., a company that makes software but does not offer brokerage service, the platform is licensed by Metaquotes to forex brokers.Metatrader 4 is considered the best trading platform for retail traders looking for excellent technical analysis indicators and utilities. Metaquotes includes a number of preloaded technical analysis indicators which can be pushed onto a chart on the fly.
Metatrader offers a few unique advantages over other forex software:
1. Free for traders – Metatrader 4 is free for traders, and can be used for both live forex trading, as well as demo trading.
2. Programming opportunities – Metatrader offers an internal coding system, which some traders use to build new technical analysis tools, automate their strategies, and backtest technical trading ideas.
3. Widespread usability – Metatrader 4 is built to work on Windows 98, 2000, XP, Vista, and 7. Some traders have found that with a little modification, it may also run on WINE, a Windows tool for Linux users.
4. Community – Because so many traders are using Metatrader 4, the community that surrounds the product is one of the best benefits to the trading platform. Traders release to the public—often for free—their trading strategies, custom indicators, and new tools that can be loaded into the Metatrader 4 system for use by anyone.
TradeStation
The TradeStation trading platform is another very popular, and independent forex platform. Developed by TradeStation Technologies Inc., TradeStation is licensed to forex brokers who then provide the software application for download to their clients.Previously, TradeStation was used only for stocks, bonds, options, commodities, and other financial markets. But when TradeStation came to the market in 2003, the foreign exchange market never looked back. Many brokers picked it up in 2003 and ran with it until today, a point in time where it is used by retail and professional traders.
The TradeStation trading platform does come at a cost if you choose not to use the company as your brokerage firm. Individual traders can access TradeStation software for the $249.99 pricetag, while professionals pay $299.99.
Luckily, forex data is provided for free with TradeStation, though you’ll have to pay if you want access to stock markets, bonds, options, etc. In some cases, forex brokers will pay for the cost of TradeStation upfront for investors with large accounts. Other brokers will charge a monthly fee to use TradeStation, thus replacing the $249-$299 upfront cost. Last but not least, others will charge a monthly service fee but waive it for very active traders who generate enough trades to cover the costs in other spreads and fee charges.
Other Trading Platforms
Forex brokers may also develop their own foreign exchange trading platforms to conduct trades. These platforms are proprietary in that they are often in use only at one broker, and are owned, designed, and maintained by the forex brokerage firm.Many brokers give forex traders a choice in which trading platform they use. Some brokers will opt to provide a proprietary trading platform for free to their customers, or allow their clients to utilize MetaTrader 4. Others will provide TradeStation at cost, or free, depending on volume.
The main consideration with a trading platform is, above all else, comfort. Being comfortable with a trading platform and knowing the ins and outs of each of the software’s functions will make you a better trader. This is partially why we recommend demo trading—using a broker’s platform allows you to get comfortable with how the software works before risking real money.
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